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Partnership in Open Innovation

Author

Listed:
  • Xavier Martinez-Giralt
  • Rosella Nicolini

Abstract

This paper aims at assessing the importance of the initial technological endowments when firms decide to create R&D agreements. We study a Bertrand duopoly where firms evaluate the returns of an agreement according to its length. A learning process allows us to depict a close connection between firms' technology and the possibility to achieve a positive outcome from creating an agreement. Moreover, as far as learning is modeled as an iterative process, a suitable set of initial conditions is the basic factor leading to successful ventures.

Suggested Citation

  • Xavier Martinez-Giralt & Rosella Nicolini, 2003. "Partnership in Open Innovation," Working Papers 101, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:101
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    References listed on IDEAS

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    More about this item

    Keywords

    Firm agreements; learning; Open Innovation;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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